Multiple Choice
If a large increase in the wage rate leads to a net increase in the use of capital by a firm,then
A) the substitution effect outweighed the output effect.
B) the output effect outweighed the substitution effect.
C) the substitution and output effects are equal.
D) there is no way to estimate the relative size of the substitution and output effect.
Correct Answer:

Verified
Correct Answer:
Verified
Q63: Is the firm a perfect competitor or
Q118: If the wage rate were $90,how many
Q139: The Bulldog Beanery Coffee Shop is a
Q140: Which statement is false?<br>A)The concept of margin,or
Q141: How much of a resource a firm
Q142: How many workers would the firm hire
Q143: The demand for goods and services is
Q146: A firm will use more and more
Q148: If the wage rate were $250,how many
Q149: More complementary resources would _ the productivity